Strategic Debt Resolutions, LLC is constantly evolving its' understandingof the changing and unpredictable economic climate. We offer our expertise, consistent facilitation and the sharpest tools / skills to negotiate the best Strategic Loan Modificationin all possible ways. We continually study the rules and barriers to achieving an optimum result, while mitigating the confusion and frustration inherent in dealing with the lenders directly.
A Washington Post article wrote "that when the Homeowner modifies a loan without a substantial decline in their monthly payment, the default rate is very high".
We believe Homeowners need aggressive solutions and consistent intervention using a team of experts to help maintain economic stability. Given the winding road Homeowners will travel during cycles of the economy over the next few years while regaining stability and growth; Strategic Debt Resolutions, LLC will have the foresight and tenacity to support each and every client that contracts with us to examine and explore all possible options for stability.
You can be assured that the best Strategic Loan Modification available to the Homeowner will occur because we have put together the most comprehensive financial package to present to your lender / servicer / investor. We will arduously pursue answers and solutions during the negotiation process as your expert advocate during this time of hardship.
Lenders and loan servicers tend to be more attentive to a sophisticated firm negotiating on behalf of a Homeowner. It is important to understand that the lenders / servicers / investors represent their own self-interest when negotiating with the Homeowner. An experienced third party negotiator that is knowledgeable about the current regulatory environment and with the myriad of modification programs available (HAMP and other lender specific in-house programs), has the best chance to reach a favorable settlement.
When a Homeowner approaches their lender (or vice versa) for a loan modification, they may be entering into a trial period agreement that will last from 3 - 6 months. This is a temporary contract with the lender and evaluates the borrower’s ability to maintain a modification agreement before offering a permanent solution. This has now become a two phase negotiation process that forestalls the Homeowner from reaching an optimum modification, even if it is available. During this trial period, all financials with fluctuations in the Homeowner's situation has to be carefully documented and re-presented (often repeatedly) to the lender in order to maintain long term relief.
Currently, the percentage of permanent modifications offered to Homeowners is extremely low. A third party advocate has the knowledge and experience to manage the complexity of the paperwork required and prolonged negotiation process, which will increase the odds and decrease the stress of achieving a favorable result.
We utilize the same NPV (Net Present Value) analysis that lenders /servicers use to determine the cost / benefit of modification versus foreclosure.
This valuable software gives us the edge in seeing how the
modification can best suit the client and helps us strategize recourse of action if the lender is not in alignment with the analysis that best benefits the Homeowner.
Even when contracting with Strategic Debt Resolutions, LLCas your third party advocate, a trial period is offered in more and more cases. We are committed to the Homeowner throughout the trial period and maintain the case file until long-term clarity is realized; permanent loan modification terms or otherwise. If a change in the economic environment within your own situation or the situations within the bank occurs, we will guide and facilitate all possible options for financial relief. We will not abandon you or the process of your advocacy.
Experienced negotiators can stop / postpone a foreclosure process. We would prefer a minimum of two weeks before the auction foreclosure sale date.
The government has estimated that at least 7,000,000 to 9,000,000 homeowners will need financial relief in order to save their homes. The sheer volume has encumbered the lender / servicer’s ability to address each Homeowner in a timely, effective and/or satisfying manner.
There are critical segments to a successful process that can easily disqualify a Homeowner from achieving a successful modification, let alone qualify for one:
Each Homeowner's existing mortgage note and term requires new underwriting on a case by case basis, so a Homeowner is in essence performing the job of a professional mortgage broker or loan originator in putting together the comprehensive and consistent data necessary to negotiate a trial period and subsequent long-term solution.
The financial analysis that goes into presenting each case is critical in demonstrating the fine line between enough hardship to qualify and the ability to maintain the monthly trial period payments so a permanent solution can even be considered. The verifiable financials presented will be important in qualifying and monitoring swings in income and can disqualify a modification candidate at any time.
The bank or servicer of the Mortgage has shown a consistent problem in getting paperwork from the Homeowner in a timely and accurate way. It is a well known problem in the industry that the bank or servicer "loses" paperwork all the time. This problem is conveniently hard to correct because there is not a way to track accountability on the bank / servicer's end, so many repeated requests have to be honored to resubmit in a timely way the same or updated paperwork again and again. The bank / servicer have no obligation to tell you if any paperwork is outstanding and has been used consistently as a reason for disqualification.
Our firms have paid close attention to state guidelines for compliance as well as honor their primary adherence to federal and legal requirements as they emerge. The FTC will be creating new rules and regulations for the modification industry in June 2010, so Strategic Debt Resolutions, LLCwill be keeping a close eye on the new federal guidelines.
An experienced negotiator already knows how to work within the system and continuously evolves as the process changes. In many cases, the professional negotiator has established relationships with the lending institutions and loan servicers.
It is in the Homeowners best interest to work with professionals with expertise because many of the lenders or loan servicers are more responsive when communicating with a law firm / advocates because they know we are more willing to challenge the lender, state and federal agencies to protect the client rights.
Unless the Homeowner has the knowledge themselves and competency, as well as the time and energy to represent their case, it makes sense to let a professional / legal representative negotiate a modification on their behalf. Most people do not represent themselves in court, for example, if they want the best possible outcome.
Our negotiators may need to re-negotiate with the lender or servicer multiple times before accepting a result. We do not stop negotiating even if the initial modification proposal has been denied. We re-approach the lender / servicer with other programs we are aware of that may not be owned or guaranteed by Fannie Mae or Freddie Mac (Non-GSE) and work with investor specific programs. There are many modification programs our negotiators are aware of that the Homeowner is "in the dark" about, and unfortunately, this advantage on the lender / servicer / investor's part is leveraged against them.
